The Value of Proximity: Examining the Willingness to Pay for Online Local News

Abstract

The exploration of new business models based on paid content strategies in the digital environment has generated an important discussion regarding the willingness to pay for online news. Previous studies have neglected local newspapers, although several analyses have clearly identified the local (news) as a fundamental asset to convince readers to pay for information. Based on a national survey of 1,637 U.S. adults, the research presented here systematically evaluates factors that influence the willingness to pay for online local news. Results of the logistic regression analysis reveals relationships between paying intent and predictor variables such as demographics (age and gender), media use (print and online newspapers), news interest, and traditional newspaper subscription. Finally, managerial and theoretical implications are discussed.